To receive an update from Rutland County Council

20 minutes for presentation and questions

1)            FINANCIAL UPDATE – Saverio Della Rocca, Assistant Director (s151 officer) Rutland County Council

Mrs Briggs introduced Mr Della Rocca and explained that in the absence on the Leader and Deputy Leader of the Council, Mr Della Rocca would be presenting this item rather than an elected member.  Mrs Briggs explained that the Budget had been recommended for consultation earlier this year by Cabinet; to be taken back to Cabinet and then to Council on 22 February 2016 for the decisions to be taken by elected members.  As an officer of the Council Mr Della Rocca would be able to answer technical questions not political questions.

Mr Della Rocca gave a presentation on the latest position of Rutland County Council’s Budget and Medium Term Financial Plan (MTFP).

Key areas highlighted included:

i)              The Government’s Comprehensive Spending Review had been completed in November 2015 (for 4 years) against a backdrop of budget deficit.

ii)             Plans included lower departmental spending; some departments protected at the expense of others.

iii)            DCLG Local Government, where Local Authorities sit, was the worst affected.

iv)           The MTFP set out funding and expenditure over the next five years had changed substantially due to the Comprehensive Spending Review and Settlement.

v)            That the Council had the power to increase council tax by 2% plus another 2% for social care.  The Council’s MTFP assumed an increase of 3.99%.  This was the first increase since 2009/10.

vi)           The council tax freeze grant was now part of the Revenue Support Grant.

vii)          The Council was working closely with its partners and looking at how it worked with parishes to close the £2.4m gap by 2019/20.

viii)         Uncontrollable costs were increasing – apprenticeship levy (from 2017/18), national insurance contributions, national minimum wage and pension fund.

ix)           The Council was looking at invest to save capital projects and focussing on business rate optimisation and growth to regenerate the local economy.  Between 2015/16 and 2019/20 £5m would be lost from the Revenue Support Grant.

x)            That the 2016/17 Budget was currently in draft format.  It was proposed that this would be the last year of parish grant, RCC had always passported this element of the Revenue Support Grant.  Parishes had already been notified.

The following points were noted:

                      i.        That an increase to the Precept was the only means available to Parish Councils to cover the loss in income if the Parish Grant was no longer passported.  The Forum was informed that RCC Councillors would have a debate around this issue.  That this could be an opportunity to look to expand the capacity and broaden the base around volunteers.  Sustainability going forward for non-statutory functions was area that would have to be looked as it could not be taken for granted.  Some voluntary sector and community sector services were already procured by the Local Authority as partnerships, for example, Voluntary Action Rutland and the Citizens Advice Bureau.

                    ii.        That a range of factors informed the minimum desirable level of reserves.  The risk assessment covered the possibility of an increase in demand, loss of business, loss of income or if an unexpected event was to occur which would need to be addressed.

                   iii.        Parishes had received a communication advising of the proposed reductions in funding in various areas, including the shortfall in funding for several cemeteries.  Councillor Mathias agreed to look into this.

                   iv.        That the Council was continually working on sharing services and had procured several services from other authorities, for example, Legal and Internal Audit.

The Chairman thanked Mr Della Rocca for his presentation.